In the shadows of a family feud worthy of its own TV show, you might have thought Cree (NASDAQ:CREE) would forget there's business to be done. Apparently not.

For the first quarter, the semiconductor maker grew revenues 36% year over year to $66.2 million, as net income rebounded 128% to $8.9 million or $0.12 per share. LED revenue continued to gain importance, growing 3% sequentially to account for $50.6 million -- or 76% -- of Cree's sales.

On a unit basis, LED shipments grew an impressive 16% sequentially and 76% year over year to record levels, as Cree profited from a substantial pickup in the mobile handset business. Notably, the shift toward the lower-priced business contributed to a 20% year-over-year decrease in average selling price (ASP).

Meanwhile, one balance sheet issue was traded for another.

Last year, Rex Moore noted a potential problem with regards to Cree's inventory buildup. Then, in February, he saw some improvement, which has culminated in a decrease in inventory days-on-hand from 50 days on March 30 to a mere 39 days on Sept. 28. But as sales picked up this past quarter, cash flow from operations declined from $28.2 million to $18.5 million over the same six months.

That's because, while LED revenue grew 3% sequentially, accounts receivable grew 31% over the fourth quarter to $57.7 million. Days sales outstanding also jumped sequentially from 57 to 71 days. Cree did note, however, that some of those collections have already been made. These are figures to keep an eye on in the coming quarters.

Going forward, the company expects further revenue growth to $70 million in Q2, with 80% of targeted sales already booked. Cree also expects EPS of $0.13 to $0.14.

Jeff Hwang owns shares of Cree, and can be reached at